EUROPEAN CONVENTION: FINAL COMPROMISE ON CONSTITUTION LEAVES IGC LITTLE ROOM FOR MANOEUVRE.

Confirmation of the broad backing of EU Heads of State and Government for the draft Constitution secured by Valery Giscard d'Estaing at the Salonika European Council on June 20 (see European Report 2786 for further details) required Convention members not to tamper with the delicate balance secured in Part I (Constitutional architecture) - although certain key aspects are still challenged by several Member States including Spain and Poland - by making wholesale changes to the outline of Part III (Functioning of the EU and implementation of common policies) for the finalising of which Convention members were only mandated by the European Council to make so-called "technical" adjustments.

Immigration and access to the labour market.

Following the plenary session on July 4, the Praesidium presented a revised version to Convention members on July 9 in which one can but note that of the thirteen amendments tabled, several were manifestly more political than technical as acknowledged by the head of the European Parliament delegation and Praesidium member Inigo Mendez de Vigo. In order to satisfy the Germany, it is henceforth expressly stated that Article 163, which shifts immigration policy to qualified majority voting (QMV) "does not affect the right of Member States to set entry volumes for third-country nationals entering their territory from third countries to seek paid or unpaid employment". Regarding economic governance, a new Article 185 stipulates without formalising the Eurogroup, that the Euro-zone Member States can step up their co-ordination of economic and budgetary co-operation. An addition to Article 278 extends the competence of the Court of Justice to appeals by natural and legal persons against restrictive measures taken against them under the Common Foreign and Security Policy. The other amendments are essentially editorial or guarantee consultation of the European Parliament.

Cultural diversity.

Was it necessary to go further? Valery Giscard d'Estaing was convinced of this at least on one point: Article 212 on commercial policy should be reworded in order to reassure France as to the continued existence of the "cultural exception", i.e. protection for the French and European film industries in the face of Hollywood in the context of World Trade Organisation (WTO) negotiations. Following the gesture towards Germany on access to labour markets for immigrants, this move finally ensured French support for the draft Constitution...